The West African Monetary Institute (WAMI) has called for rigorous policy reforms aimed at realizing and implementing Africa’s Single Currency.
Speaking on the sidelines of the 7th Ghana International Trade and Finance Conference (GITFiC), the Institute’s Director of Multilateral Surveillance Trade Department, Mr. John Kotoku disclosed that Africa’s desire for a single currency is dependent on the policy reforms required to encourage the development of a unified trade currency for Africa.
John Kotoku stated that these policy reforms must have synergy, macro convergence, and policy harmonization to offset economic and accessibility shocks.
“It is through these resilient policy reforms that will ensure that Africa reaps the benefits of the Single Currency. Just having the currency alone in place would not yield the desired results of promoting trade, so it’s important these building blocks are laid properly.”
Mr. John Kotoku
The Institute Director expressed optimism that Africa will be well-positioned to establish a single currency, but he cautioned that the region’s vulnerability to economic shocks must be reduced if the continent is to fully reap the benefits.
“The vulnerabilities will always be with us so it’s important for us to build resilient systems to withstand these accessibility shocks. So, if we are able to implement these deliberate policies in place, the road towards a Single Currency for Africa could become a shorter one for smooth implementation.”
Mr. John Kotoku
Promoting African Trade At Ease
Meanwhile, Odeneho Kwafo Akoto II, the Paramount Chief of the Akwamuman Traditional Area, has emphasized the importance of an African common trade currency.
According to the Paramount Chief, advancing economic integration and regional growth across the continent necessitates the creation of a unified trade currency for Africa, and has so urged for concerted efforts to achieve this goal.
“In the era of digital currencies, this will also help to reduce the dependence of African countries on foreign currencies such as the US dollar, or the euro. “
Odeneho Kwafo Akoto II
As the Conference’s honored guest, the respected Chief spoke about the role of Chieftaincy Institutions in Continental and Global Finance and Monetary Architecture, the Global Debt Crisis, the Continental Free Trade Area, and Intra-African Trade.
The GITFiC is an annual conference that brings together business executives, policymakers, and subject matter experts from around the world to discuss ways to improve inter-African trade, regional integration, trade liberalization, African trade policies and practices, and, most importantly, to turn words into actions.
The conference’s seventh iteration was themed “Senchi Consensus on Africa’s Single Currency.”
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